This House is on Fire 🏠 🔥
Let’s talk housing market. With consistently debilitating news of soaring prices and lack of affordable housing, it can be easy to switch off, stick your fingers in your ears and hum to the tune of ‘I don’t ca-a-aare’. But if you’re keen to get on the property ladder, or even if you’re already a lucky homeowner, you really should care. Why? Because it’s important to be aware of the ever-changing trends be in the position to buy or sell, you’re fully aware of what you’re getting yourself into.
So, what are the latest key changes?
Prices across the UK have - you’ve guessed it - continued to rise. House prices have steadily defied forecasts and have, on average, remained scarily high. The average residential property in the UK is now at an all-time high of to £317,281. Rents, however, have recorded their first annual drop for six years, according to UK’s biggest estate and letting agency.
High competition is driving down deposits. The mortgage market is seeing increased competition, which, in turn, is driving down deposits and pushing lenders to target traditionally riskier buyers. However, the rates are still pretty steep compared to the rates available to those with higher deposits.
Mortgage rates remain low. Some reports even point to a decrease in the cost of borrowing. The average two-year fixed-rate mortgage is now 42% cheaper than in March 2014, according to Bank data. Borrowers are now able to get 2-year variable tracker rates from 1.18%, 2 year fixed rates at 1.14% and a 5-year fix from 1.78%.
- The pace of house price growth slowing down in London. A year ago, house prices were going up by nearly 15% year-on-year in the capital, while house prices rose by a mere 1.5% in the year to the end of March. Potential first-time buyers will no doubt be encouraged by such a trend.